Defense Budget

Potential Reductions to DOD's Fiscal Year 1990 Ammunition Budget Gao ID: NSIAD-90-23 October 23, 1989

Pursuant to a congressional request, GAO reviewed the military services' fiscal year (FY) 1990 budget requests and the Army's request for ammunition production base support.

GAO found that the services overstated $756.2 million of the total $2.7-billion ammunition budget request. GAO also found that the Army overstated its request by $514.7 million because: (1) it did not need three items to meet 1990 delivery schedules; (2) two items had production backlogs; (3) three items had overstated program quantities; (4) it did not approve two developmental items in time for the 1990 budget; (5) existing items could meet its needs less expensively than two new items; (6) one partially tested item's acquisition was questionable; (7) it overstated one item's unit cost; and (8) a production base support item was not on the 1990 production schedule. GAO also found that the Navy overstated its request by $28.5 million because: (1) three items had production problems; and (2) it did not approve one item in time for the 1990 program. GAO also found that the Air Force overstated its request by $193.3 million because: (1) it did not need six items to meet 1990 delivery schedules; and (2) it requested three items in quantities that would produce excessive inventories. In addition, GAO found that the Marine Corps overstated its request by $22.7 million because it could use 1989 funds to meet its 1990 needs for one item.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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